(Alliance News) - All Active Asset Capital Ltd on Monday said it was discussing a possible offer for podcast platform Audioboom Group PLC.
The London-based technology investor said it is in "constructive discussions" with Audioboom about a possible offer for the podcast producer at GBP12.00 per share.
Audioboom is an on-demand podcast platform that provides its users with advertising, distribution and production services.
If an offer is made, the company said, it would consist of 12.5 new AAA shares and 200 pence in cash per Audioboom share.
This would value Audioboom shares at 1,200p each, a premium of 36% to Friday's closing price of 885p. That would make the offer worth about GBP188 million.
Audioboom shares rose 8.5% to 960.00p in London on Monday morning.
AAA has received irrevocable undertakings to accept such an offer in respect of 4.1 million Audioboom shares, representing 26% of its share capital.
"The directors believe the combination of AAA and Audioboom would create a compelling portfolio of innovative, high growth technology investments that could create significant new accretive value for the shareholders of both companies in the future," AAA said.
The firm said Audioboom's board recommended several preconditions for any offer, as noted earlier in July.
These include raising GBP15 million through a firm placing of 18.8 million shares priced at 80p each; completing the acquisition of Sentiance NV; and de-listing from AIM, which the company expects to occur next Friday.
However, "there can be no certainty that any firm offer will be made even if the preconditions are satisfied or waived," the firm stressed.
Separately, AAA said that Allenby Capital Ltd has resigned as nominated advisor and broker on Sunday due to a conflict of interest. AAA shares remain suspended. Under AIM rules, the investor has one month to appoint a new nominated advisor.
In 2020, AAA's net assets grew sharply, hitting GBP14.0m on December 31, from GBP487,000 in January, despite posting a widened loss of GBP2.0 million, from GBP703,689 in 2019.
Shares in All Active Asset Capital were suspended from trading on AIM on April 29, closing at 53.50p each.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Audioboom Grp. (BOOM)